Overview

* Hess Midstream ( HESM ) Q3 net income rises to $175.5 mln, up from $164.7 mln last year

* Adjusted EBITDA for Q3 misses analyst expectations

* Company completed $70 mln Class A share repurchase, $30 mln Class B unit repurchase

Outlook

* Hess Midstream ( HESM ) expects Q4 net income of $170 - $180 mln

* Company anticipates Q4 Adjusted EBITDA of $315 - $325 mln

* Company reduces 2025 capex guidance to $270 mln due to project suspension

Result Drivers

* THROUGHPUT INCREASE - Higher production led to a 10% increase in gas processing, 7% in oil terminaling, and 7% in water gathering volumes compared to the prior year

* NEW COMPRESSOR STATION - Completion of a new compressor station added 35 MMcf/d capacity, supporting throughput growth

* SHARE REPURCHASES - $70 mln Class A share and $30 mln Class B unit repurchases supported increased cash distributions

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Net $175.50

Income mln

Q3 Miss $320.70 $321.90

Adjusted mln mln (5

EBITDA Analysts

)

Q3 $186.80

Adjusted mln

Free

Cash

Flow

Q3 Capex $79.80

mln

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the oil & gas transportation services peer group is "buy."

* Wall Street's median 12-month price target for Hess Midstream LP ( HESM ) is $38.00, about 10.7% above its October 31 closing price of $33.95

* The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)